Stock Fund Inflows High Despite Scandals

U.S. stock funds could have their second best year for inflows, although six firms connected to improper trading scandals suffered combined outflows of $21.3 billion in November, fund research firm Lipper Inc. said Thursday.

Despite the scandals, U.S. equity mutual funds had inflows overall of $22 billion in November, down from $23.8 billion in October, Lipper said.

Lipper named the six firms suffering the combined $21.3 billion in outflows as Alliance Capital Management, Bank of America Corp., Janus Capital Group Inc., Old Mutual of South Africa’s Pilgrim Baxter & Associates, Marsh & McLennan Cos.’ Putnam Investments and Strong Capital Management.

“Investors who held scandal-tainted funds have reacted in most cases either by riding out the storm or changing brands and moving to another firm, rather than abandoning mutual funds as an investment vehicle,” said Don Cassidy, senior analyst at Lipper.